When we have discussed and agreed one or more suitable target properties with you, we will normally then conduct a forest appraisal to assess property condition, performance and productivity. Depending on the investor’s requirements, this appraisal can be more or less detailed. This ‘due diligence’ appraisal normally includes the following topics:
- Summary of key features of the property, including topography and quality of physical access routes
- Ground and soil conditions
- Form, quality and growth rate of the existing tree crops
- Requirements for capital investment e.g. fencing and internal roads
This appraisal can be extended to assessment of ‘forest value’ using financial modelling, which includes income sources such as timber sales, land appreciation and sporting lets; also, the estimated costs of future management, maintenance, harvesting, woodland acquisition, replanting and other operations. This theoretical value can be tested with various economic assumptions and benchmarked against recent prices paid in the market.
In order to estimate future harvest volumes for the above analysis, we will often undertake crop measurement and inventory methods, using established methods for Forestry Mensuration approved by the Forestry Commission.